Modern Healthcare February 17, 2018
Micro-hospitals gaining favor with health systems amid shift to ambulatory care
Tennova Healthcare’s flagship Physician Regional Hospital in North Knoxville, Tenn., was in desperate need of an overhaul, and its then-owner, Health Management Associates, in 2013 decided to upgrade with a $304 million replacement.
In 2015, HMA’s new owner, Community Health Systems, acquired a 109-acre plot for the new hospital that would be closer to higher-income suburbs, about 8 miles west of Physician Regional.
According to executives overseeing the expansion, they envisioned a 272-bed hospital that “incorporates the constantly changing care delivery models” and “meets the needs of its patients well into the future,” while at the same time reducing the footprint of the current 1 million-square-foot behemoth built in...